Britain: Lowest-Paid Labor in EC for Europeans, Integration Will Mean Sharp Curbs on Domestic Policy: Part 2 of a 4-Part Series

Article excerpt

THE timing couldn't have been much more poignant: Only days
after Britain's insistence that it be exempt from the European
Community's newly negotiated social policy - a policy it argued was
merely a euphemism for Europe-wide labor regulations - a study
published this week showed Britain with the highest proportion of
low-wage workers in the Community.

For its 11 EC partners, Britain's distinction is undoubtedly a
dubious one, and vindication of the rest of the Community's push
ahead on employment issues.

The survey results reflect Britain's traditionally very
different approach to employer-employee negotiations from those
practiced on the continent.

And it was those "differences" that Prime Minister John Major
could not afford to be seen giving up at the EC summit in
Maastricht, Netherlands, before an election.

The survey, conducted by a French economic research
organization, found Britain's high proportion of low-paid workers
to be a result of its absence of a minimum wage, and its tradition
of negotiating wages at the individual company level. On the
continent, contract bargaining is generally carried out
industry-wide, and minimum wages are set by government.

Even though the debate over the new treaty's social chapter
nearly brought the Maastricht negotiations to a halt, most
observers find the policy as it was adopted so vague and drained of
force that it would make little difference even in Britain.

The policy forbids any Community-wide action regarding pay and
wages, and calls for respect of "diverse national practices" in
contractual relations. …